Insurance Still Considered Complicated? IFG Changes Perceptions Through Education and Technology
Jakarta, October 5, 2025 – Despite persistent low public understanding of insurance in Indonesia, the Indonesia Financial Group (IFG) is pioneering innovative strategies to transform perceptions by combining rigorous research with practical education and cutting-edge technology. Through its dedicated research arm, IFG Progress, the group aims to increase financial literacy and insurance inclusion across the nation.
Data-Driven Initiatives for Financial Literacy and Inclusion
IFG Progress was established as a center for public policy research focusing on insurance, guarantees, and investment sectors. Its role is pivotal in designing evidence-based strategies that support financial literacy and broader insurance inclusion. IFG Corporate Secretary Denny S. Adji emphasized that all IFG programs are developed from detailed data analysis to ensure measurable impact.
“Every step we take is based on data. The results of IFG Progress research are the basis for increasing national insurance literacy and inclusion,” Denny shared during an interview with VOI on October 4. ### Targeted Education Programs for Diverse Communities
IFG’s approach to education is multifaceted, targeting key segments such as young families, micro, small, and medium enterprises (MSMEs), informal sector workers, the younger generation, and participants in the sharia economy. The educational outreach includes practical simulations, such as demonstrating protections for small businesses against fire risks and compensation benefits for disaster victims’ families.
Such hands-on methods aim to demystify insurance, making it more accessible and relatable to ordinary Indonesians who may find the products complex or intimidating.
Affordable and User-Friendly Insurance Products
Using insights derived from IFG Progress research, IFG has also developed straightforward, affordable insurance products tailored to the market’s needs. For example, IFG Life’s LifeSAVER product offers insurance coverage starting at just IDR 25,000 per month, making life insurance more accessible for a broader audience. Meanwhile, Jasa Raharja Putera offers a third-party liability product to further support community protection.
In tandem with product innovation, IFG launched the One by IFG digital platform to allow users to purchase and manage insurance products online, reflecting the company’s commitment to digital transformation.
“Digitalization for us is not just a matter of convenience but creates personal experiences for segments that were previously difficult to reach,” explained Denny.
Collaborations Boosting Insurance Reach
Beyond its internal initiatives, IFG collaborates with various government bodies and financial institutions, including the Ministry of Agriculture, Bank Mandiri, Bank BTN, and fintech companies to bring micro-insurance products to digital platforms. These partnerships embody IFG’s role as a facilitator that unites stakeholders to accelerate financial inclusion nationally.
Social Impact Beyond Business
IFG also pursues social missions through programs like Kindness to Progress, which have been implemented in villages such as Magelang, West Bandung, and Malang. These programs have generated a notable Social Return on Investment (SROI) value of 4.99, translating to an economic impact of IDR 1.63 billion. Additionally, IFG supports the distribution of financial literacy books to all 34 provinces and runs employee volunteer programs to deepen community engagements.
Progress and Challenges in Insurance Literacy
According to data from Indonesia’s Financial Services Authority (OJK), the national insurance literacy index improved from 36.90% to 45.45% in 2025, with insurance inclusion rising substantially as well—from 12.21% to 28.5%. Nevertheless, insurance expert Irvan Rahardjo notes that Indonesia’s insurance inclusion remains relatively low for a disaster-prone country.
Irvan pointed out that significant barriers include low financial literacy and limited purchasing power, which contributed to the insurance sector’s shrinking GDP contribution, down to 2.76% in 2022. He advocates a shift in the industry’s focus from corporate-centric models to community-based approaches involving cross-sectoral collaboration. He recommends adopting the “penta helix” model engaging government, academia, businesses, communities, and media, to achieve more inclusive and sustainable insurance growth.
Looking Ahead
As IFG continues to evaluate and refine its strategies with the guidance of IFG Progress, the company remains committed to breaking down the complexities surrounding insurance. By deploying education, affordable products, and digital innovation, IFG hopes to make insurance an accessible, valued, and understood financial tool for all Indonesians.
For more information on IFG’s initiatives or to explore their insurance products, visit the One by IFG platform or contact IFG directly.
This article is available in several languages, including English, Chinese, Japanese, Arabic, and French. Please refer to the Indonesian version for the most accurate information.
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